Bank Indonesia was recognised for its robust framework to mitigate sectoral risks, fortify bank resilience and modernise financial infrastructure. Jakarta, 21 May 2025 – Bank Indonesia (BI) has been awarded Best Systemic and Prudential Regulator in Asia Pacific by TAB Global, in recognition of its exceptional stewardship of Indonesia’s financial stability through targeted macroprudential policies, rigorous stress testing, and forward-looking regulation of digital finance. The award underscores BI’s success in balancing economic growth with risk mitigation, ensuring the nation’s financial ecosystem remains resilient amid global volatility. Targeted macroprudential measures to curb risks BI deployed strategic macroprudential tools to address emerging risks, including tightening loan-to-value (LTV) ratios for real estate and imposing stricter capital requirements on lenders exposed to volatile commodity markets. These measures curbed speculative activity while preserving credit flow to productive sectors. A cornerstone of its framework is the Macroprudential Liquidity Buffer (MLB), which mandates banks to hold higher reserves during economic upswings, safeguarding against liquidity crises during downturns and preventing overheating. Rigorous enforcement and investor protection initiatives BI’s annual stress tests on Indonesia’s 12 domestically systemically important banks (DSIBs), simulating extreme scenarios like commodity price crashes and currency depreciation, yielded robust results. Capital adequacy ratios (CAR) remained strong at 24–25%, far exceeding regulatory requirements; liquidity coverage ratios (LCR) surpassed 150%, ensuring resilience against prolonged market disruptions; and non-performing loans (NPLs) held steady at 2.3% alongside an average return on assets (ROA) of 2.5%—demonstrating BI’s balanced approach to stability and profitability, and reflecting the DSIBs’ resilience under BI’s rigorous oversight. A holistic approach to sustainable growth By integrating macroprudential policies, stress testing and digital regulation, BI has forged a resilient financial system that supports Indonesia’s economic progress while shielding against shocks. The award highlights BI’s role as a regional leader in prudential regulation, balancing innovation with stability to foster a safer, more efficient financial ecosystem for businesses and consumers alike. About the Regulation and Supervision Awards The Regulation and Supervision Awards programme evaluates and recognises the achievements of central banks and banking regulators in fulfilling their varied roles of managing macroeconomic performance, in terms of maintaining inflation and price stability; systemic and prudential regulation to ensure soundness and stability of the financial system; and conduct of business regulation to cover the licensing, behaviour and practices of financial services providers to ensure equity amongst participants and fair treatment of consumers and users. Media Contact Genivi Factao Editor TAB Global Email: [email protected]
